Asian Paints posts Rs. 1,232cr net profit in Q2 FY24
Asian Paints has disclosed its Q2 FY24 financial results, revealing a consolidated net profit of Rs. 1,232.39 crore. This marks a 53.31% increase from Rs. 803.83 crore during the same period last year. The company's consolidated revenue for the September quarter showed a slight 0.03% YoY growth at Rs. 8,478.57 crore, compared to Rs. 8,457.57 crore in the year-ago period. The revenue also declined by 7.66% from the June quarter.
The company's revenue misses estimates
The Q2 revenue for Asian Paints fell short of expectations, as a poll of four brokerages estimated it at Rs. 9,036.4 crore and net profit at Rs. 1,287.4 crore. Amit Syngle, Managing Director and CEO of Asian Paints explained that the "Domestic Decorative Paint business for Q2 was muted, registering a flat value sale with a 6% volume growth." He attributed this to the unpredictable monsoon affecting market sentiment and possibly causing sales to be postponed to October.
What about EBITDA and interim dividend?
Asian Paints' earnings before interest, tax, depreciation, and amortization (EBITDA) for Q2 amounted to Rs. 1,717 crore, compared to Rs. 1,219.3 crore in the year-ago quarter. The EBITDA margin was 20.2%, up from 14.4% in the same period last year. The company has announced an interim dividend of Rs. 5.15 per equity share with a face value of Rs. 1 for the fiscal year ending on March 31, 2024.
International sales are down 3.9%
During Q2 FY24, Asian Paints' international business sales decreased by 3.9% due to difficulties in South Asia and Egypt. The Home Décor segment saw a decline in both Bath Fittings and Kitchen sales, while acquisitions Weather Seal and White Teak saw growth. Following the revenue shortfall, Asian Paints shares were trading at Rs. 2,954.00 on the National Stock Exchange, down 3.45% at 3:18pm.
